Financial Crime World

Portugal’s Fight Against Financial Crimes: A Look into Portugal’s Anti-Money Laundering (AML) Regime

Portugal, a country known for its stunning landscapes, rich cultural heritage, and now, robust financial defense, is making significant strides in the realm of combating financial crimes. The European country aims to strengthen its anti-money laundering (AML) defenses against money laundering and other illicit financial activities.

Portugal’s AML Measures and EU Compliance

Portugal has been implementing rigorous anti-money laundering measures, aiming for EU regulation compliance, such as:

  1. AMLD4 and AMLD5
  2. Strengthening financial system transparency

According to a European Commission report, Portugal significantly enhanced its AML regime since 2018.

Establishment and Role of the Financial Intelligence Unit (FIU)

  1. Central body for STR reporting and analysis
  2. Enhancing AML detection and prevention

Investigation and Prosecution of Financial Crimes

Portuguese authorities have conducted numerous investigations, leading to:

  • Successful prosecution of individuals and organizations involved in:
    • Money laundering
    • Tax fraud

One notable case took place in February 2021, where Portuguese authorities dismantled a money laundering and tax fraud network, with over €1.5 million seized.

Role of Portugal’s Financial Services Authority (ASF)

ASF’s role is to:

  1. Supervise financial institutions
  2. Ensure compliance with AML regulations

ASF has taken the following approaches:

  • Risk-based supervision
  • AML risk management systems customization for the size, complexity, and risk profile of different financial institutions

Portugal’s ongoing commitment to upholding international anti-money laundering standards fosters a safe environment for businesses and investors, contributing to economic growth and stability.